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Upon receipt of a completed application from an insurance
agent, the application will be reviewed to determine if we
are able to offer a quote. We reserve the right to decline
quoting to any agent or decline any single risk. Under no
circumstances are we obligated to offer a quote.
H.T. Bailey will offer a quote based only on a completed
application. A verbal estimate of our capabilities is not a
binding quote. Once a quote is offered it may not be bound
unless accepted formally in writing by an H.T. Bailey
underwriter or other authorized staff member. H.T. Bailey is
not bound to bind a quote if the underwriter has reason to
believe the risk has changed since the written quote was
offered. Additionally, H.T. Bailey is not required to bind
the written quote if the conditions provided have not been
met. Quotes are usually valid for 30 days unless otherwise
specified on the quote sheet.
BINDING:
In all cases, it is the agent’s duty to represent their
client and review all quotes offered in detail. H.T. Bailey
may not have offered or be able to offer the coverages
requested in the application. H.T. Bailey never extends
binding authority to its agents. Due to the nature of
Managing General Agents/Excess Surplus Lines Wholesaler’s
contracts with its insurance carriers, additional coverages
or higher limits cannot be assumed to be automatic. It is
the responsibility of the agent to contact H.T. Bailey with
a request to add or increase limits. Our company may or may
not have the authority to do so without first obtaining
permission from the insurance carrier.
ASSIGNMENT:
A policy cannot be assigned to another without
the written consent of the Insured.
AUDITS:
Deposit premiums are based upon an estimated premium basis.
An audit is used to verify that an appropriate premium has
been collected for the actual premium basis. The agent should review
all policy provisions with the insured, and point out those auditable
provisions. Agents are responsible for the collection of audit
additional premiums and forwarding them to H.T. Bailey, per the audit billing notice.
In addition, audits should be paid, disputed or returned for
direct collection by the date indicated on the billing
notice.
CANCELLATIONS:
Every insurance carrier has its own procedures for
cancellation. These are explained in the conditions section
of the insurance policy. We require a request for
cancellation in writing by the insured.
COVERAGE:
A policy may not be as broad in scope as the policy it is
replacing or the coverage requested. A policy is issued to
reflect the coverages as quoted by H.T. Bailey to the agent.
Great care should be exercised by the agent in reviewing
coverages with the insured to point out areas that differ
from the original request of the insured
to the agent.
ENDORSEMENTS:
Additional coverage, revisions, change in hazards, change of
exposures, revised operations, etc., are subject to
acceptance by the Insurer on the policy. Generally all
revisions are subject to the same procedures, terms, and
conditions applicable to the original placement, unless the
policy specifies otherwise. The policy can only be endorsed
by H.T. Bailey or the Insurer.
The agent or broker has no authority to amend the policy.
FINANCING:
H.T. Bailey is not a party to any
finance agreement. All premium finance contracts must be set
up showing the actual insured’s name. The agent is
responsible for advising the Premium Finance Company of any
changes to the policy, in addition to any minimum earned premium
provisions.
PREMIUM OBLIGATIONS:
H.T. Bailey does not have any contact with the insured.
(Please Note: There may be some accounts where the Insured
may be contacted directly by H.T. Bailey). The agent becomes responsible for any
monies that H.T. Bailey is obligated to pay the
insurance carrier as a result of the agent’s request for H.T.
Bailey to bind an account.
Most of the carriers we represent do not allow for flat
cancellations. Once an account has been bound, the agent
becomes responsible to H.T. Bailey for any monies due to its
carriers regardless of whether the amount due has been
collected from the insured.
Our company strongly encourages that a down payment be
collected. H.T. Bailey may or may not require a down
payment. Agents/Brokers will be billed by invoice. Monthly
statements outlining outstanding balances are provided as a
courtesy. Some of our insurance carriers require a down payment
in order to bind.
OWNERSHIP OF ACCOUNTS:
We require that all agents and brokers maintain proper
insurance licenses, that clients’ monies are handled in
trust as required by state law and that each agency carry
errors and omissions insurance. All accounts are the sole
property of the agent placing business with H.T. Bailey. |
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